Page 22 - SelfEmployment Taxes
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SELF-EM PLOYM ENT
TAX
- Self-employment tax (SE tax) is a social security and Medicare tax
primarily for individuals who work for themselves. Your payments
of SE tax contribute to your coverage under the social security
system. Social security coverage provides you with retirement
benefits, disability benefits, survivor benefits, and hospital
insurance (Medicare) benefits.
- Generally, you must pay SE tax and file Schedule SE (Form 1040 or
1040-SR) if either of the following applies.
- If your net earnings from self-employment were $400 or more.
- If you work for a church or a qualified church-controlled
organization (other than as a minister or member of a religious
order) that elected an exemption from social security and
Medicare taxes, you are subject to SE tax if you receive $108.28 or
more in wages from the church or organization.
- Note:There are special rules and exceptions for aliens, fishing
crew members, notary public, state or local government
employees, foreign government or international organization
employees, etc. For additional information, refer to
Self-Employment Tax.
